The word Forex was brought out of that word, but it can also be called Forex market or Forex trade. Forex can be traded all round the clock, 24 hours a day. The Forex is about the largest financial markets in the world. Even if all other financial institutions are put together, the Forex market still outruns them.

The Foreign Exchange market is a spot or cash interbank market. This market was established in 1971 when a currency began to be exchanged with other currencies. There are about 4500 currency trading institutions. These institutions consist of commercial companies, local central banks, and international banks. There is virtually nothing you can do between different countries that didn't need exchange of different currencies. Foreign currencies are needed no matter how small they appear.

The exchange of foreign currencies in local trade is called consumer foreign exchange market. The Forex exchange has many opportunities for investors, and companies depending on their goal and priority about trading. The trading of Foreign Exchange cuts across many nations, and the participation of overseas economies in Forex helps to bring down the great risks involved in international trading or investing.
When Forex was introduced, there were only very rich investors. There was no need for small investors, but in the Forex market today small investors can invest by buying and selling small units or lots of foreign currencies.

The Roles of commercial banks in Forex are as follows:

Commercial bring out the business relationship between two people or parties.

The carry out specified speculations about the right time to buy and sell currencies. They do this by determining the exact time the various currencies they are trading will be increasing or decreasing in value.

It is almost true that many commercial banks obtain about half of their revenue from trading currencies.

The Foreign Exchange market is very large that not one single organization can control it. Over the year, the volumes traded have grown, until it is now in excess of $1.5 trillion daily. Today, trading can be done over the telephone, or through the use of a computer, using various terminals across the globe.